Re: Howard's merger-mania

[Steven Stegmann <steve.stegmann@xxxxxxxxxxxxx>]

Howard,
 
It isn't as much fun as a good conspiracy theory, but you're right.  The market (Ford & Chevy) sets the price for the trucks and everyone else has to build to that price.  If you can't sell at that price and make money, you're gone.  

Howard R Pletcher <n9ads@domain.elided> wrote:
I suppose the conspiracy theorists among us would want to see an
agreement of this type as the reason both left those markets, but the
economists among us would see it as two minor players in those markets
who weren't large enough to be profitable, particularly given the
overcapacity in the industry to supply the number of trucks that were
being sold, making a business decision to try to preserve their
companies.

I did see drawings of a Dodge pickup with an IH grille in the late 1970's
that was proposed as a way to keep IH in the pickup business and during
the down years of the 1980's, there were rumors that Chrysler might buy
the International Truck business, but neither proposal seemed to go too
far. And IH was a customer for Chrysler transmissions and almost a
customer for Chrysler engines for the 1981 Scout, but as far as it was
known, there were no under the table agreements between the two
companies. 

Before anyone makes too much of the customer/supplier relationship
between IH and Chrysler, remember that there was about as much GM content
in the Scout as Chrysler. This was just the automotive business.

Howard

On Wed, 18 Jun 2003 22:29:54 -0700 J Grammer writes:
> 
> So, do you think there was any truth to the rumour about the
'gentleman's 
> agreement' circa '75? Dodge would leave the medium duty market if IH 
> would leave the light duty......
> 
> Jim